Austin’s BigCommerce Faces New Layoffs Amid Restructuring
Austin, Texas – In a move that’s left many employees reeling, local tech powerhouse BigCommerce, known for helping businesses set up online stores, has announced yet another round of layoffs as part of its restructuring plan. This latest decision follows a few rounds of cutbacks over the past two years and comes on the heels of a report showing a 7% growth in revenue for the third quarter of this year.
Looking for Stability
On a recent earnings call, Ellen Siminoff, executive chair of the board, disclosed that despite this growth, the company’s operational performance has not met expectations. “Despite our growth and many achievements over the last several years, our operational performance has fallen short of expectations,” said Siminoff on November 7th, sparking concern among employees and investors alike.
The board is betting on a streamlined approach as they not only cut jobs but also exit some of their real estate positions and discontinue underperformed software projects. Travis Hess, the newly appointed CEO, assured investors that the moves are set to pave the way for long-term success, stating, “I’m confident that the actions we’re taking now will set the stage for long-term success.”
As of July this year, BigCommerce had about 417 employees based in the Austin area, but the number of impacted workers from this latest round of layoffs remains unclear, as the company has not released specific figures.
Employee Reactions: A Mixed Bag
The company’s recent decisions have prompted various reactions from those affected. Several employees took to social media platform LinkedIn to express their feelings about being laid off. One Austin-based employee shared, “This morning, I felt sick to my stomach after receiving an error logging into my work email, only to discover I was among the 10% laid off at BigCommerce. Over the past three years, I’ve learned to adapt and take on various HR roles and responsibilities as needed in a constantly shifting landscape.”
Employees who’ve been laid off not only highlighted the emotional toll but also the valuable skills they had acquired while working at the company. Many of them are now looking ahead, ready to embrace new opportunities, even amidst the uncertainty.
A History of Layoffs
This isn’t the first time BigCommerce has trimmed its workforce. Last year, it cut about 13% of its staff, and this year it followed that up with an additional 7% reduction. The showdowns against dominant competitors like Shopify and the intricate e-commerce landscape have pushed the company to make some tough choices.
Earlier this year, there were whispers that the company was exploring a sale, hinting at deeper struggles behind the scenes. Yet, despite the hurdles, CFO Daniel Lentz shared positive news about the company’s third quarter revenue, which nearly reached $84 million. This marks a reassuring 7% year-over-year increase.
The company reassured stakeholders that they are adjusting their investments to focus on higher-performing areas, with plans to almost double their sales capacity by 2025. They aim to align their sales organization with critical strategic areas that have been highlighted in recent discussions.
Stock Performance and Future Prospects
BigCommerce’s stock was trading at $6.28 per share as of November 8, a slight increase from the days leading up to the earnings report. However, its 52-week stats show a low of $5.12 and a high of $10.19, indicating the volatility this tech company has faced.
Originally founded in Australia in 2004, BigCommerce made waves in the tech industry as it expanded to Austin in 2011. After raising nearly $225 million in funding from respected firms, it made its debut on the stock market in 2020.
With this recent round of layoffs, many will be watching to see how BigCommerce navigates its restructuring plan and what the future holds for this significant player in Austin’s tech scene. As the company aims to realign its strategies, the local tech community is already buzzing with anticipation about what changes might come next.
